According to Bloomberg, Momentum Blizzard will close its studio in Versailles, France. The French office of Action Blizzard is responsible for their press releases, local production, customer support and marketing in Europe, with 400 employees in 2019. By early 2020, however, the office will cut 134 jobs, casting a shadow over the outlook.
An anonymous source contacted the media to report that Momentum Blizzard had planned to relocate staff from its French office to its London office, but abandoned the plan after receiving the impact of events such as the new crown outbreak and Britain’s exit from the European Union. It was not immediately clear where the employees were going, and Momentum did not respond to media inquiries.
Earlier this year, an investment group, on behalf of Action Blizzard shareholders, raised questions about CEO Bobby Kotick’s overpaying. Kotick explained to the Securities and Exchange Commission that they have “multiple incentives” so they can “take a few more bites on Apple” and earn much higher salaries than CEOs of other companies in the industry.
Momentum Blizzard’s “record” earnings results followed by a series of job cuts. The company’s profitability seems to be inversely inversely related to the survival of the people who are really responsible for developing the game. And an internal form leaked in August showed a huge difference in income between the company’s executives and employees responsible for QA and customer support.
Momentum Blizzard has been in this situation since 2018, cutting 800 jobs, or 8 percent of its workforce. And the layoffs were announced shortly after celebrating record annual revenues.
Action Blizzard is a successful gaming company, but they have not been very successful in maintaining the survival of their employees.